Skung Tradelink Ltd.

SAT-appeal

• SEBI alleged that 22 stock brokers connived with clients and facilitated premeditated, manipulative reversal trades in stock options, prima facie amounting to fraud/fraudulent conduct.
  SAT considered appeals against the ex-parte ad-interim order dated 17.02.2016 restraining the appellants from securities-market dealings except for existing cash-segment clients. · The impugned restraint order was found unjustified on the stated facts and the appeals were allowed; the order text supplied ends before the formal concluding directions.
  Appeal: Appeal Nos. 11, 12, 13, 14, 15, 16, 17 and 18 of 2016 were heard together and decided by SAT on 25 February 2016; the supplied text indicates relief against the impugned order.
• 22 stock brokers prima facie connived with clients to facilitate non-genuine reversal trades in illiquid stock options to engineer artificial profits/losses, constituting fraud.
  22 brokers restrained from dealing in securities market except as broker for existing clients in cash segment · 22 brokers restrained from accepting registration of any new client
  Appeal: Appeal Nos. 11-18 of 2016 decided on 25.02.2016 challenging WTM ex-parte ad-interim order dated 17.02.2016; heard together on stay plea
• 22 stock brokers prima facie connived with clients to execute non-genuine reversal trades in illiquid stock options to create artificial profit/loss, covered as fraud/fraudulent under PFUTP.
  22 brokers restrained from 17.02.2016 from dealing in securities market except as broker for existing clients in cash segment · 22 brokers restrained from accepting registration of any new client
  Appeal: Appeal Nos. 11,12,13,14,15,16,17,18 of 2016 against WTM ex-parte ad-interim order dated 17.02.2016, heard together; SAT decision dated 25.02.2016
• 22 stock brokers prima facie connived with clients to facilitate pre-meditated non-genuine reversal trades in stock options to generate desired profits/losses, prima facie fraud under PFUTP.
  Impugned WTM direction: 22 brokers restrained w.e.f. 17.02.2016 except as broker for existing clients in cash segment · Impugned WTM direction: barred from registering new clients; exchanges to inspect and report within 6 months from 17.02.2016
  Appeal: Appeal Nos. 11,12,13,14,15,16,17,18 of 2016 before SAT, Date of Decision 25.02.2016, heard together on stay plea; Tribunal found merit in challenge (full order truncated)
• Prima facie allegation 22 stock brokers connived with clients to facilitate non-genuine reversal trades in illiquid stock options to create artificial profit/loss.
  WTM restraint under challenge: 22 brokers barred from dealing except as broker for existing clients in cash segment · WTM restraint under challenge: brokers barred from accepting registration of new clients
  Appeal: Appeal Nos. 11-18 of 2016 against WTM ex-parte ad-interim order dated 17.02.2016; decision dated 25.02.2016 finding merit in challenge
• Prima facie allegation 22 brokers connived with clients to facilitate non-genuine reversal trades in illiquid stock options to engineer artificial profit/loss, covered as fraud under PFUTP.
  22 brokers restrained from dealing except as broker for existing clients in cash segment · 22 brokers restrained from accepting registration of any new client
  Appeal: Appeal Nos. 11-18 of 2016 against WTM ex-parte order dated 17.02.2016; Date of Decision 25.02.2016; heard together on stay
• Brokers prima facie connived with clients in non-genuine reversal trades in illiquid stock options to generate desired profits/losses, constituting fraud under PFUTP.
  WTM ex-parte order dated 17.02.2016 restrained 22 brokers from dealing except as broker for existing clients in cash segment · WTM restrained 22 brokers from accepting registration of any new client
  Appeal: Appeal Nos. 11, 12, 13, 14, 15, 16, 17 and 18 of 2016 before SAT, Date of Decision 25.02.2016, heard together on stay; disposal truncated
• 22 stock brokers prima facie connived with clients to execute non-genuine reversal trades in illiquid stock options to create artificial profit/loss, covered as fraud under PFUTP.
  22 brokers restrained from 17.02.2016 from buying/selling/dealing except as broker for existing clients in cash segment · 22 brokers restrained from accepting registration of any new client pending investigation
  Appeal: Appeal Nos. 11-18 of 2016 against WTM ex-parte order dated 17.02.2016 heard together; SAT Date of Decision 25.02.2016, prima facie merit in stay plea